How Does Improved Technology in the Chicken Industry Affect Market Equilibrium?

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SUMMARY

The discussion centers on how improved technology in the chicken industry affects market equilibrium, specifically through shifts in demand curves. The consensus indicates that advancements in technology lead to a rightward shift in the demand curve, moving from equilibrium E1 to E2. The participants agree that this shift is not due to consumer income changes or wage increases for chicken workers, but rather a direct result of technological improvements. The correct answer to the posed question is option d: improved technology in the chicken industry.

PREREQUISITES
  • Understanding of market equilibrium concepts
  • Familiarity with demand and supply curves
  • Knowledge of factors affecting demand
  • Basic economic principles related to consumer behavior
NEXT STEPS
  • Research the impact of technological advancements on agricultural markets
  • Study the effects of consumer income changes on demand elasticity
  • Explore the relationship between substitute goods, such as beef and chicken
  • Examine case studies of technological improvements in the poultry industry
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Economics students, market analysts, agricultural economists, and anyone interested in the dynamics of supply and demand in the food industry.

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Homework Statement



Refer to the above graph, which shows the market for chicken where D1 and D2 represent different demand curves. A change from E1 to E2 is most likely to result from:
Answer


a)a decrease in consumer incomes.


b)an increase in the wages of chicken workers.


c)an increase in the price of beef products.


d)improved technology in the chicken industry.



The Attempt at a Solution




the graph is in the attachment.

I'm not sure what this would be but I guess it couldn't be c since on the graph it shows that the price is lowered.
 

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Shifts in the demand curve come from all things that aren't the price of chicken.

Which of those four things would decrease consumer demand of chicken?
 
so it would be a decrease in consumer incomes.
 
That would be my guess.
 

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